The new model’s increased ride height hints at a mini-SUV - in effect, a smaller brother for the Ford Kuga. But its increased clearance may have been forced by what are clearly wider tracks at the front and rear - and they could point to a mini-MPV crossover.

This is also a more likely option, given that Ford currently lacks a contender in an area of the market where rivals such as Vauxhall (Meriva) and Renault (Modus) have a strong presence.

The new model will take many of its styling cues from the Fiesta, although it’s thought that the Iosis Max concept - unveiled at last year’s Geneva motor show - could provide pointers to a mini-MPV’s eventual roofline.

Engine options are unlikely to include the Fiesta’s base 1.25-litre petrol unit, because of the new car’s heavier payloads. But the 1.4 and 1.6-litre turbodiesels would be suitable, along with a small turbocharged petrol Ecoboost unit.

The car could also feature Ford’s Powershift dual-clutch transmission, which is now being rolled out on US-market Fiestas.

The new car is likely to be built in Romania. Ford has confirmed that it has secured a €400m (£332m) loan from the European Investment Bank to set up production of a new small car at its factory in Caiova.

Capacity at the plant will expand to around 250,000 units per year by the end of 2011.

[quote TheWizardWeb]so I'm thinking it's a Juke rival.[/quote]
There are rumours elsewhere that this is jacked up because it has a 4x4 drivetrain, so it seems to be a rival for the Juke (and Mini Countryman) and is really a scaled-down Kuga.